Auditors procedures - disclosure and presentation, Auditing

Auditors Procedures - Disclosure and Presentation

1) Ascertain that what steps the client uses to identify suppliers, selling on terms that reserve title by enquiry of those causes for purchasing and of the board.

2) Ascertain that what steps are considered to quantify the liability to that suppliers for balance sheet purposes, involving liabilities not so far reflected in the creditor's ledger.

3) Wherever there are material liabilities to those suppliers:

Whether the liabilities are quantified in the accounts, review and test the procedures through that the amounts disclosed have been computed.

Whether the directors consider such quantification is impracticable since have either calculated the liabilities or showed their existence test and review the information upon that their disclosure is based.

Consider the adequacy of the information disclosed in such accounts.

Ensure about the basis on that the charge for taxation is computed takes account of the accounting treatment adopted and wherever essential is adequately disclosed.

4) Wherever liabilities to those suppliers are said not to exist or to be immaterial, test and review the terms of sale of most important suppliers to confirm about this is so.

5) Collect formal written representation from the directors either such the information disclosed is in their view or that there are no material liabilities of this nature to be disclosed as accurate as it is reasonably probable to achieve.

Ownership or title to stocks previous the advent of the Romalpa case was implied in such whether we ordered the goods, have set up a liability for them or have paid for them, have acknowledged them, they are in our possession, we are employing them for trading, nobody is laying claim to them, then they are ours. The student should noted such Romalpa sales do not cover goods sold on sale or return or goods sold on consignment wherever a sale will just be made on fulfilment of some agreed event that as the resale of the goods through the consignee.